Russian President Vladimir Putin on Friday signed a bill that raises income taxes for the rich, part of efforts to help fill government coffers depleted by the war in Ukraine. The tax hikes were being presented domestically as “systemic reforms”. Issued on: 12/07/2024 – 18:12 2 min Advertising Read more Russian President Vladimir Putin on … Read more
A new agreement between Moscow and Tehran on comprehensive cooperation has been temporarily suspended due to problems that Iranian partners are facing, Russia’s RIA state news agency reported on Tuesday citing a Russian foreign ministry official.“This is a strategic decision of the leadership of the two countries,” RIA cited Zamir Kabulov, the foreign ministry official … Read more
Unhedged podcast episode: ‘The billionaires’ tax’[MUSIC PLAYING]Robert ArmstrongThe G20 group, which represents the world’s largest economies, is discussing a billionaires’ tax for the first time. Today on the show, why are the very, very rich so very, very rich? Is it a problem and what should we do about it? This is Unhedged, the finance … Read more
Fact: Russia’s Finance Ministry has submitted legislation to reintroduce progressive taxes on personal income, with the progressive scale starting with annual incomes exceeding 2.4 million rubles (,100).
Germany and Europe are preparing for two significant events: the European Parliament elections and the UEFA EURO 2024 football tournament in Germany. The German Ambassador to Cyprus expressed concern about the rise of right-wing parties in the elections and emphasized Germany’s support for a solution to the Cyprus issue based on UN resolutions. Germany aims to host EURO 2024 as a symbol of cohesion in Europe, promoting sustainability, diversity, and inclusion. Germany also advocates for a strong and united EU, despite facing challenges like Putin’s war in Ukraine. The 2004 enlargement of the EU serves as a lesson on the importance of unity and speaking with one voice in foreign policy. Germany’s proposals for EU decision-making reform aim to ensure the Union remains capable of action. Germany is committed to supporting Cyprus in finding a comprehensive solution to the Cyprus issue, emphasizing the importance of confidence-building between Greek-Cypriot and Turkish-Cypriot communities.
Russia’s finance ministry proposed introducing extra progressive income tax rates for those earning more than 2.4 million roubles annually, as well as raising the mineral extraction tax for fertiliser and iron ore producers.
Russia has announced changes to its tax system, moving from a flat to a progressive system by 2025. The upper rate of income tax will rise from 15% to 22% and for corporate taxes from 20% to 25%. These changes are expected to reduce the budget deficit caused by increased military spending but may not be enough to prevent economic overheating. The tax hikes are modest compared to military and defense spending, which is 6% of GDP and rising. The overall fiscal stance remains expansionary, challenging the central bank’s efforts to combat inflation. Russia’s budget deficit is expected to halve this year and remain flat in 2025, while growth forecasts vary with some predicting modest growth and others more upbeat figures.
Russia has announced changes to its tax system, including a shift to a progressive income tax system in 2025, with the upper rate increasing from 15% to 22% and corporate taxes from 20% to 25%. These changes are expected to reduce the budget deficit caused by increased military spending.
Russia’s Finance Ministry has proposed amendments to the tax code, including raising corporate income taxes and introducing a progressive personal income tax scale. The changes are expected to be passed by the State Duma before autumn 2024 and come into force in 2025. The proposed changes include raising corporate income tax to 25%, reintroducing a 5% income tax rate for IT companies, and setting thresholds for the progressive personal income tax scale. The reforms are estimated to increase consolidated budget revenues by RUB2.6 trillion in 2025. Despite the changes, Russia’s progressive personal income tax remains modest compared to other BRICS countries. The implementation of a progressive income tax could have negative impacts on economic growth and macroeconomic indicators.
Fact: The new tax thresholds and hike in corporation tax in Russia are expected to raise about 2.6 trillion rubles (bn) a year.